Power tariff  may rise as Railways hike coal freight rate by 20%

Railways have increased the
coal freight rates by 20% at Rs. 120 a tonne on an average from Tuesday because
of which the power tariff is set to rise by 10 paise a unit on an average.

For a
benchmark travel of 700 km of Indian coal, the tariff has moved up by Rs 132 a
tonne to reach Rs 792/MT .

 Railways have changed the freight class of
coal  from 130 to 150 and the kilometer
classes have been reduced. For an instance, as against a previous freight rate
of every 10 km, the new rates are applicable at a gap of 50 km, according to a
release.               

“Nothing official with us,
but the railways plan to put coal on a particular freight class may increase
tariff in excess of 15 per cent. But it all depends if our plants are
railway-fed or MGR (merry-go-round)-fed. In any case, the tariff may move up by
10 paise a unit,” a senior NTPC official said.